Four brokers accused of helping to rip off investors in a large, Long Island Ponzi scheme were arrested today by U.S. postal inspectors and FBI agents.
Investigators said the four in question helped convicted swindler Nicholas Cosmo, also known as the “Mini-Madoff,” run a scheme whereby investors lost close to $200 million.
Cosmo earned the “Mini-Madoff” moniker due to the fact that his Ponzi scheme collapsed just after Bernie Madoff’s $60 billion debacle was exposed.
The four suspects are expected to be arraigned later today.
All four suspects are charged with helping Cosmo and his Agape World Inc. take money from unsuspecting investors. They allegedly made false promises that the investments were low-risk, and were merely bridge loans while high interest rates would be paid in return.
Victims of the alleged Ponzi scheme include teachers, immigrant workers, and soldiers who were serving overseas in Iraq and Afghanistan.
U.S. Attorney Loretta Lynch said in a statement that the defendants “allegedly convinced thousands of men and women to part with their hard-earned money for what was supposed to be a safe investment.”
The defendants were identified as Jason Keryc, 34; of Wantagh, N.Y.; Anthony Massaro, 40, of Boynton Beach, Fla.; Anthony Ciccone, 39, of Locust Valley, N.Y.; and Diane Kaylor, 36, of Bethpage.
The suspects face securities fraud-related charges that carry up to 20 years in prison, if convicted.
Cosmo was convicted in the Ponzi scheme last year.
It’s good to see more trash being swept off the street. Hopefully, these schemers will be going away for a very long time.
- NY, Fla. associates of ‘mini-Madoff’ arrested (kansascity.com)
- FBI arrests NY, Fla. associates of Ponzi schemer (miamiherald.com)
- FBI Arrests NY, Fla. Associates of Ponzi Schemer (abcnews.go.com)